Posts tagged "Teen Finance"

We get it. In a world where casual scrolling can get you a date, meal or outfit, it’s easy to get caught up with the obsession of swiping. After opening your first credit card bill and hiding it from your parents, you realized maybe a quick swipe isn’t the best approach to everything. Before having a complete breakdown, we got you covered! We chatted with Rod Griffin, Director of Public Education for Experian, and he gave us the rundown on keeping your college credit in tip-top shape!

Many students hear the words ‘credit score’ in high school + college but truly don’t understand its value, what is credit + why is it so important?

Credit is simply obtaining goods or services and then paying for them at a later date under terms agreed upon in a contract. Managing credit is crucial to starting on the right path to your short and long-term financial goals. It might be a cliché, but knowledge truly is power.

Your credit accounts are reported in your credit history. A credit score is a tool used to analyze the information in your credit history. Think about a paper you write for class and the grade a teacher assigns to that paper when you turn it in. Your credit report is like the paper. A credit score is like the grade your teacher or professor gives your work.

Your credit report is a historical record of how and when you pay your bills, the debt you have accrued, and how long you’ve had credit accounts for. A credit score is calculated using the information from your credit report at the moment the report is requested and indicates the likelihood you will not repay a debt as agreed.

There are five key factors that impact your credit score: how often you pay bills on time, how long you’ve been managing credit account, how much credit you’re actively using compared to your total available credit, the different types of credit you are using, and how many companies or lenders have been checking your credit report.

Credit reports and scores are important because they are used to help lenders and businesses determine whether you will be a good, reliable customer. Lenders use credit reports and scores to decide whether you qualify for a loan, a credit card, or a mortgage. What many don’t realize is that credit reports and scores also play a part in whether you can get the latest cell phone, qualify for an apartment lease or what interest rate you’ll pay for a credit card. They also can affect how much your car insurance rates are and how much of a utility deposit you might have to pay to start electric service.

Having good credit can even play a part in getting your dream job – although credit scores are never used in employment decisions. Employers get a condensed version of the credit report so they can see if you have been financially responsible without all of the personal information or details about these accounts.

From swiping for textbooks to shopping for a new wardrobe, what are some bad habits students have that lower their credit score without them being aware of it?

Students often get credit cards to use in case of emergencies, but don’t realize pizza on Friday night really isn’t one. One of the easiest mistakes that students make is using a credit card without thinking ahead about how they will repay the debt. A common pitfall for new credit card users is to max out their credit card, without the funds to pay it back. It opens a dangerous path towards missed or late payments and insurmountable debt that are guaranteed to damage your financial future. The best way to avoid that is to never overextend your credit: keep your credit card balance below 30% of your credit limit, and always pay your bills on time, and if possible in full every month.

Student loan debt is a growing problem for many young people. What many students do not understand is that they don’t have to accept every penny offered. They should know how much they actually need to cover their education expenses and take on as little student loan debt as possible. High student loan debt can stand in the way of buying a home and other important financial opportunities after graduation.

Tossing bills and hoping they magically disappear seems to be a trend many students do if they don’t have the funds, why is avoidance a bad idea + what are some ways students can be proactive in this situation?

Dealing with a growing stack of bills can feel overwhelming, but avoiding your financial responsibilities are a surefire way to cripple your future opportunities, even if it feels good in the short-term. Ignoring bills could make renting an apartment, purchasing a car, or securing financing for a home or business incredibly difficult, if not impossible. Students can be proactive by understanding when bills are due and how much is due, and develop a plan to satisfy their debts.

If you know you are facing problems, talk with your lender, utility company or cable provider to work out a repayment plan. Doing so can help reduce the negative impact on your credit history. There are a number of options for managing student loan debt. Being proactive can help protect your financial future.

With little to no money in college you can have a tight financial flow during this time, what are small steps that you can take to raise your credit in college?

Having your parents include you as an authorized user on their existing credit card, or setting up a joint card, is a great way to build positive credit history. Not only will it show lenders that you can be trusted with credit lines, it opens up an opportunity for you to learn from people with experience in managing their credit and broader financial activities.

If you are renting an apartment, you may be able to have your positive rent payments reported. Doing so can help you establish your credit history and start it in a positive direction.

You might also consider opening a secured credit card account. That means you deposit money in a savings account that is tied to the card. If you don’t pay on time, the lender is protected – or secured – because they can withdraw payment from your savings account. However, they would still report the payment late, so be sure you always pay on time. If you do, you can build a positive credit history and start saving at the same time.

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In some cases the damage has already been done, what’s the first step out of the school to raising your credit after graduation?

One way to instantly increase your credit score as a graduate is by using Experian Boost, a free service that incorporates your utility and mobile phone payment history into your score. This can help you build up more credit history, which helps improve a credit score. It is a great first step but don’t stop there – make sure to pay all of your bills on time and don’t take on too much debt.

Being dope + young has pressures that only one could imagine. Not only do you deal with the expectations from every adult in your life but also social pressures from others around you and yes that includes keeping up with the latest of everything. From technology to fashion, it’s as if the walls are closing in second by second to ensure yourself you stay current! To top it off, it doesn’t even help when your closest friends seem to be “balling” out of control and gets to use her parents credit cards as if there are absolutely no limits in the world. Well, I’m here to tell you that it does not matter how much money you have that matters but how resourceful you are with your funds. So it’s definitely okay for you to still have a fly life without having the most money. Trust me on this one. So let’s dig into how you can make your part time check work for you…

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Company You Keep– Ok so you know how the say “watch the company you keep?” Well, you know it’s a true statement in regards to shopping buddies as well. If you know that it’s a difficult for you to say the word “no” when it comes to shopping, watch the shopping buddy who joins you. If your friend constantly is swiping left and right, she’s more than likely is going to want you do the same and this is where pressure comes into play when dealing with unnecessary spending. So the next time you going to shop for something specific bring a laid back friend or just hit the boutique by yourself. Sometimes shopping solo is the best way too! Less stress, less opinions and no pressures!

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No Impulse Buys– So every time you head out to the stores set a plan before you head out the door. If you just need to buy a pair of jeans or a cd, that is what you should come back with. Or even if you give yourself a total amount that you’re going to spend, stick to the amount. This way you can have the freedom to buy what you want to and even indulge in that sale but still stick to the amount you want to spend. Trust me, the best feeling is going out shopping and coming back knowing you stuck to your budget and bought something you wanted! Score!

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Refocus!! Ok, I know the fact that your parents wouldn’t give you money to but the $150.00 pair of shoes that everybody has makes you feel like the end of the world is here. But I’m going to let you end on a little a secret…life goes on. I know your day to day let downs seem never ending and although you should live for today you should still plan for tomorrow as well. So even though it may seem like everybody else is keeping up on the latest trends, saving and setting money to the side is more fulfilling. So even though you may not have every latest thing, once you head off to college you will have enough money aside to not only to easily pay for your books but have comfortable amount to live on and not scraping last minute. Just saying.

It’s about that time again! Holiday commercials, pumpkin spice latte in the air and empty pockets? Yes, we get it. Even though it’s a festive time a year that doesn’t mean your pockets always match the season. Between homecoming, costumes and gearing up for gift giving season you might need a few extra dollars your way. So what’s better than a part-time gig to help you stack up for the holiday? Check out these quick tips to get a head start on your search!

Start Early + Research- Ok, yes there are numerous job openings but that doesn’t mean it will always stays that way! To not get left in the dust create a quick list of places that you would like to work + that are hiring. This makes your search clear, focus & easier for you to snag a gig.

Fun times, Fun place? – Just because it’s work doesn’t mean you have to dread going there. While you’re on your job search and pick a place where you actually shop or an environment you enjoy. Find a place you like and go for it! This makes your work days go by faster and you’ll actually want to learn more about your job that can aid you in the future. Also, a killer discount always helps when it comes to gift giving!

Second Glance +Follow Up- So before you turn in your resume take a second glance! If you’re submitting it in person or online make sure to double check your resume for the correct info & proper presentation. Also, make sure to follow up to make sure it’s received!

This morning – as I maneuvered between rooms, getting ready for work – I heard the email notification from my phone – and because I have become slave to the aging iphone 4 – I run every time it calls out to me, anticipating good news regarding Knowledge Bank or correspondence regarding my recent job search. Nothing makes a day start better than a good-news email at 7:30 in the morning. Consequently, nothing makes a day start worse than a bad-news email at 7:30 in the morning. But because I can sometimes be over confident -there’s a little foreshadowing here – I always assume my inbox bears good news, but this morning would be different.

At 7:30 in the morning – before normal business hours – I received an email stating that after much consideration, another candidate had been selected for the position I had interviewed for 22 hours and 45 minutes ago. When I read the email, I immediately had 3 thoughts:

1. Who could have been a better candidate than me?

2. How can “much” consideration be given in 22 hours and 45 minutes?

3. They probably sent this email to the wrong person. I’ll wait for the apology to come later

today.

I went ahead to work like every other day. At the exact moment I’m typing this sentence, it’s been 7 hours and and 15 minutes since I received the “mistakenly sent” rejection email and I have yet to receive the apology email. This leads me to one conclusion. It’s time to swallow the hard pill and accept the fact that I’m not getting the job.

Thankfully, I’m still employed with what my parent’s generation would consider “a good job”, but I still felt this was a perfect “you gone learn today” moment for the CORE readers. So, here’s your lesson…

There are approximately 27 million Americans who are currently unemployed in this country. A significant number of these are teens. Additionally, there are millions of other people who are underemployed. How would you feel if you were the best dancer in school, yet you’re selected to play the tambourine instead of selected as a majorette? That’s almost what it’s like to be underemployed.

So, as we approach the summer break and teens across the country begin applying for summer jobs, I want to share a few lessons that can be learned from the brashness and stupidity I displayed prior to and during my interview.

Lesson 1. Give yourself some “just in case something happens” time.

When reading the second paragraph of this post, did you ever wonder why I was being so exact with the time? The time is branded into my memory because I was 15 minutes late for my interview. Being on time is rule #1 when preparing for interviews and I understood this 16 years ago when I applied for my first job. Unfortunately, there was a massive concoction of failure that added to my tardiness, but it’s still my responsibility to allot enough “just in case something happens” time so that I am punctual for my first impression. Just like we save money for those “just in case” moments, plan on giving yourself “just in case” time when preparing for an interview. Normally 15-30 minutes is sufficient depending on where you live. Yesterday I sure needed fifteen. smh

Lesson 2. Who you talking to?

Have you ever gotten a little sassy with your mom and she hits you with the “who you talking to” response? Think of mom the next time you are preparing for your interview. Not because your interviewer “brought you into this world so they’ll take you out”, but because it’s important to understand the position, personality and temperament of the person that’s interviewing you. The person conducting my interview, was the person that I would be reporting to if I was awarded the job. He wasn’t a big personality guy. He was very mild mannered. He didn’t seem to be into a lot of small talk (maybe because we were short 15 minutes.) But, I’m sort of the opposite. I view the interview as my time to shine (because it is). I want the interviewer to know that I am confident in my skills and abilities and I have no problem verbalizing that. Problem is – and this I can’t prove – I think I may have been too enthusiastic and maybe too ambitious for him. I don’t believe in being someone you are not, but I do believe there were some nonverbal cues from the interviewer that were indications for me to tone it down a bit.

3. Be Yourself

Your personality is just as important to your viability for a new job as your experience and skills. Let the hiring manager know who they maybe hiring during the interview. You want a company to accept you for who you are. Now, I’m not condoning the neck tattoo or wearing purple lipstick to the interview. However, I am condoning the vibrant personality associated with the person that wears purple lipstick on the weekends.

4. Watch Your Mouth!

The interview is a time for you to sell yourself, sell your skills, sell your strengths and sell your experiences. I think I sold myself straight down the river. I sold myself, I sold my skills, I sold my strengths and I sold my experiences. I should have stopped there. I went ahead and sold my ambition too. Now in some circumstances this can be perceived as an asset to the interviewer. But you have to be conscience of “who you talking to”? The guy who was interviewing me had recently lost 3 members of his team. He had only been in his role for 5 months. So the last thing he needed to hear from me was how this position would help further my career. It’s important to know when to hit the brakes. If that job was at an intersection, I cruised straight through the red light.

There isn’t an exact science to perfecting every interview. Truth is you could follow every lesson in this article and still not land the next gig you interview for. But as you’ve learned in some of my other posts, perseverance is a key ingredient to success in life and just because you’ve
heard 2 no’s doesn’t mean your next interview won’t end in a yes.

So you have a sickness. You haven’t admit it to anyone and the doctor says no matter how much antibiotics you take or sleep you get, they can’t patch you up. Ok here it goes, for some reason every time money touches your hand it disappears in less than 5 seconds! As soon as you reach out to receive it you already know that it’s going to vanish within the next 24 hours. So you need to find a cure asap! Because trying to save for the promdress you spotted 2 weeks ago, your allowance and part time gig are just not cutting it like it used to. Here are a few key ways to stretch that dollar bill!

Food– Yes, every type of fast food joint is just “oh so conveniently” placed right around your school. So picking up a breakfast sandwich or smashing a Whopper is as easy as 1, 2, 3! But as quick as you are to pull out your wallet to pick up the addictive but unhealthy foods, have you been just as quick to add how much you spend in a week or even a month on food?? I know you love running away from the truth… but it will set you free! You already know what I’m going to say. Instead of constantly swiping your card try carrying snacks you can throw in your bag. Munch on healthy snacks throughout the day so not only you save money but then you’re not scarfing down the closest big mac in hands reach when you get a chance. So you can’t cut cold turkey?? Ok so make it a treat! Maybe just treat your self on Fridays until you ween yourself off completely.

Clothing– Clothes are a slice piece of heaven for you. You love everything about fashion and style so you feel like that’s where should your money go, right?? Wrong! You can still scream “style icon” on a budget! You can give yourself mini shopping sprees and not come up broke. So thrifting is one of our faves ways to get unique clothing on a budget. But even if “thrifting” is not your thing all your fave boutiques and stores have great sales atleast a couple of times a year! So I know that getting tons of emails can some what be annoying but they may be you ticket to saving you a good amount of money a month. The next time you shop make sure you receive their email blasts so you can hold out your shopping spree until it hits.

Entertainment– Give yourself a weekend budget in order to not over spend. Headed to the movies?? Have a ‘pitch in’ meal before you go! The money you guys spend on individual snacks you could have a hefty feast between the 4 of you guys! Instead of spending 20 bucks you guys can have taco night for the whole night. Also as a new driver you’re just realizing why your mom would silently curse to herself each time she passes a gas station…because it is nowhere near cheap to drive! So instead of driving aimlessly around the city have a set map of your stops so you can cut down on gas money also.

Well it’s better to learn it now then being old and unfabulous, right??

Ok so we’re officially a couple of months in the new year and how are you doing with budgeting? I know money is something we all love to spend but hmmm maybe not so much manage. It’s a new year which means it’s time for you to turn over a new leaf. Here are a couple tips that will have you not just rockin’ a fly clutch but making sure it is full as well!

Vision Board– Just a little reminder. The best way to see and to reach a savings goal is to visually see it. So whatever you’re saving for cut out a picture and put it on your wall or bulletin board. This way you’ll be constantly reminded of why you need to save and much more careful of what you spend your money on.

Rainy Days– Yes, we would love to live in a perfect world where we know what would happen next but unfortunately we don’t (at least it keeps life exciting, right?). Anyways let’s jump back on track. So you never know what can happen and yes that includes unexpected expenses. I know looking at your checks you feel like you don’t have enough money to save, well you’re wrong. You do not have to put hundreds in the bank a week, just put what you can afford. Instead of agreeing on an amount of what you would save because your check changes every week, agree on a percentage. So let’s say every two weeks you put 10% of your check. Trust me…it adds up!

“You Can’t Touch This”– Just like MC Hammer said as he rocked the stage same goes with you and your savings account. As excited as you get by how much you are savings you have after couple of months, make sure you do not touch it. And if you do it has to be in emergency situations in which the savings were made for! Oh and let me get one thing clear the shoe sale at the boutique does not quite make the cut!! I know it may seem like self torture now but you will thank me for this later

Score! It’s A Goal– Once you get in the habit of tracking what you spend (I promise it won’t seem like a chore after awhile) you can begin setting goals for yourself. You’ll begin to see and notice spending patterns you have within yourself. You can slowly begin to cut back on what you notice what you spend a lot of money on. And each week you should have atleast one goal. If it’s bringing your lunch or cutting back on your destinations to not go over your gas money, it will all help at the end.

Being smart about your funds is just as important as sporting the hottest fashion trends out right now. Hmmm… think about it. If you don’t know how to save then how are you going to buy those hot shoes for your bestie’s party next month? Your parents are going to start giving you that good ol’ side eye the next time you kindly reach your hand out for more money. So hey, before they even give you the “You need to start being responsible” speech beat them to the punch and watch your account grow! Ok, ok enough of the speech let’s see if you are a Budgetnista or not?

Closet Check!– Yes, I know the feeling of fresh clothes in your closet is somewhat addictive! You can feel yourself wanting to rip off the tags as soon as you pull it out the bag and find the perfect place to debut the new piece to your clothes collection. BUT ask yourself how often do you buy new clothes? And where are your fave stores? Do you give yourself a spending limit before going out? Oh how I know you love all these wardrobe is a mixture of higher, lower and thrift pieces!

A Foodie??– You’re telling yourself look, I’m not in 2nd grade anymore and packing lunches are the most annoying thing in the world. I know it seems like all 5 minutes of you preparing a meal the next day is life threatening but its not. How many times do you go to the drive thru after summer school? Or how many McGriddle wrappers are in the back of your car? Setting aside 10 extra minutes to eat breakfast at home or throwing a snack for after school will save up! You’ve probably spent 10 bucks in just vending machines already…Think about it.

Small Temptations– Well, you know that they say it’s not the big problems that drive you crazy but the small bumps in the road that will drive you up the wall. Well, it’s same for your budget. Is it easy for you to get sidetracked? Do you make a lot of thoughtless purchases? It’s not always the huge purchases that makes your account slowly dwindle, it’s more of your small daily temptations that add up! From the Redbox station to the Passion Fruit Ice Tea from star bucks to the new nail polish you snagged at the drugstore. If you really added up a week of your random buys, you just saved up for your prom shoes…Yes, it’s true.

So you have a sickness. You haven’t admit it to anyone and the doctor say no matter how much antibiotics you take or sleep you get, they can’t patch you up. Ok, here it goes, for some reason every time money touches your hand it runs through you like water! As soon as you reach out to receive it you already know that is going to vanish within the next 24 hours. So you need to find a cure asap!! Because trying to save for the homecoming dress you spotted 2 weeks ago and still try to get the perfect shoes, your allowance and part time gig is just not cutting it like it used to. Here are a few key ways to stretch that dollar bill!

Food– Yes, every type of fast food joint is just “oh so conveniently” placed right around your school. So picking up a breakfast sandwich or banging out a Whopper is as easy as 1, 2, 3! But as quick as you are to pull out your wallet to pick up the “addictive but unhealthy” foods, have you been just as quick to add how much you spend in a week or even a month on food?? I know you love running away from the truth… but it will set you free! Ok, so you already know what I’m going to say. Instead of constantly swiping your card, carry snacks you can throw in your bag. Munch on healthy snacks throughout the day so not only you save money but then you’re not scarfing down the closest big mac in hands reach when you get a chance. So you can’t cut cold turkey?? Ok so make it a treat, maybe just treat your self on Fridays until you ween yourself off completely.

Clothing– Clothes are a slice piece of heaven for you. You love everything about fashion and style so you feel like that’s where should your money go, right?? Wrong! You can still scream “style icon” on a budget! You can give yourself mini shopping sprees and not come up broke. So thrifting is one of our faves ways to get unique clothing on a budget. But even if “thrifting” is not your thing all your fave boutiques and stores have great sales atleast a couple of times a year! So I know that getting tons of emails can some what be annoying but they may be you ticket to saving you a good amount of money a month. So the next time you shop make sure you receive their email blasts so you can hold out your shopping spree until it hits. So the best way you can save up a good portion and get more for your dollar!

Entertainment– Give yourself a weekend budget in order to not over spend. Sooo headed to the movies?? Have a pitch in meal before you go! The money you guys spend on individual snacks you could have a hefty feast between the 4 of you guys! So instead of spending 20 bucks you guys can have taco night for the whole night.Also as a new driver you’re just realizing why your mom would silently curse to herself each time she passes a gas station…because it is no where near cheap to drive! So instead of driving aimlessly around the city have a set map of your stops so you can cut down on gas money also

Well its better to learn it now then being old and unfabulous, right??

Long before it was used as an adjective to describe rap music or before Denzel’s depiction of Frank Lucas in the movie, America has had a running obsession with gangsters. Names like John Dillinger, Al Capone, Whitey Bulger and Demetrius Flenory will infamously be a part of American history. I believe American fascination with gangsters stems from three things; the adoration of rags to riches stories, our subconscious appeal to rebellion and American proclivity to violence, dating back as far as the philosophy of manifest destiny.

Today, the American gangster is no longer a machine gun toting bank robber or a drug kingpin. The most notorious criminals today hide under the auspices of politicians and financial professionals who deviously work to alter the fabric or our country for their own financial gain. Just as our criminals are smarter, it is time for our students to become smarter as well. Besides, if you are going to protect your rights in the land of opportunity, education is going to be paramount. The game is far more sophisticated than it used to be and is evidence as to why the number of scholarship offers is more important than the number of instagram followers.

The process of achieving happiness and success in this country requires intelligence, fearlessness, and heart; Characteristics that all notorious gangstas possess. Problem is, today, being a criminal doesn’t have the same payoff it once did. Think about it. What are the benefits to being a gangsta? Money or, better yet, fast money? Living on the edge? We live in the richest country in the world with more self-made millionaires than anywhere you can Google. If it’s fast money you desire, start a website that allows people to link up with friends, post status updates and like pictures. Then go public (the process of selling ownership stakes in a company to the public) and become a billionaire before age 25. Or better yet, start a blogging platform which you can later sell to Yahoo for $1.1 billion at age 27. To me, that’s fast money! For the thrill seeker, if you want to take risks, start a business. It’s a process filled with unexpected realities and the potential of lucrative rewards that don’t require looking over your shoulder or keeping an attorney on retainer.

I get the infatuation with gangstas. Their stories are interesting, the music is bumpin and the movies are classics. Although we live in the greatest country in the world, even it was established by treasonous murders. Rapper Plies put a verse in a song that says, “I don’t know if 25 years is worth 2 years of ballin.” It’s definitely not and anyone who argues the math struggles with algebra, doesn’t know the true value of ‘X’ and didn’t carry the 1. To paraphrase def poet Tommy Bottoms, “America was designed for the get rich, there are a million and one ways to get paid and most of them are legit.” In, 2013 smart is the new gangsta and gangsta, figuratively speaking, looks a lot more like Steve Erkel than Big Meech or Larry Hoover. I understand that we are not all gonna be like Dr. Heathcliff Huxtable, so don’t stop hustlin, just change your hustle.

The message in this article is inspired by positive propaganda, tshirt design company, Dangerous Negro. Check out their many educational and inspiring designs at dangerousnegro.com.